South Korea says that the one-billion-yen fund to be paid by Japan is part of measures to back up the Japanese government’s apology and self-reflection expressed by Foreign Minister Fumio Kishida in December last year over Tokyo's wartime sex slavery.

Foreign Ministry Spokesman Cho June-hyuck said on Tuesday during a regular news briefing that the financial contribution holds significance in that it is about restoring the victims' honor and dignity and healing their scars.

Cho did not make clear whether the fund is compensation or not, but he virtually hinted that it is, which contradicts Japan’s position that the fund does not serve as compensation.

Japan upholds the position that all legal responsibilities related to the issue were resolved in the 1965 treaty which established diplomatic relations with South Korea, stressing the one-billion-yen fund is not compensation.

However, the Seoul government maintains that the issue of the sex slavery victims was not resolved by the treaty and that the fund is virtually compensation as it will be paid by the Japanese government based on its apology and self-reflection on the matter.